Waste Levy Increase in Victoria 2025: What it Means for You?
Back in mid-2024, the Victorian State Budget included an increase to our waste tax levy that is set to come into effect from the 1st of July 2025.
With only a few months until this adjustment occurs, many people are wondering exactly what the increase is and what it means for them, particularly in terms of skip hire services.
In this article, we’ve taken a closer look at what waste levies are, why they’re important, and how this increase will affect you.
For more than 20 years, Graham of Red Man Bin Hire has been providing homes and businesses in Melbourne’s northeast with quality and reliable skip bin hire. With varying sizes available, we’re sure to have a skip to meet your needs. Contact us today for more information or to book.
What is a Waste Levy?
The idea behind a waste levy (also known as a landfill tax or waste tax) is to help reduce the overall waste generated by residential and industrial properties by requiring anyone who hires a skip bin to pay licensed landfills for the waste they’ve generated. The levy is designed to promote recycling and the establishment of resource recovery management programmes.
Do Waste Levies Work?
Yes, the introduction of waste levies in Australia has been a major driving force for our growing recycling rates. Between 1996 and 2019, our carbon emissions dropped by 6 metric tonnes, our recycling rate increased by 52%, and jobs in the waste and recycling sector increased by 26,000.
Why is a Waste Levy Important?
While paying to dispose of waste can seem like an inconvenience, waste levies are important for many reasons, including:
Makes Recycling and Resource Recovery More Financially Appealing
In the past, landfill was often the cheaper option for waste disposal, which has not been great for our environment. By increasing the cost of sending waste to landfill, recycling and resource recovery become more financially competitive with individuals and businesses being incentivised to find alternative solutions for disposing of waste.
Addresses the Hidden Costs of Landfilling to Society
Without a waste levy, landfill gate fees are charged according to the direct costs of landfilling. While this may cover the running costs of the site, it doesn’t reflect the wider impact (such as noise, odour, and dust for local residents and businesses; greenhouse gas emissions; air pollution and leaching of chemicals; the opportunity cost of recyclable resources being sent to landfill; and the opportunity cost of land use).
Supports Environmental Programmes
In Victoria, part of the revenue from waste levies is invested in resource recovery and waste management infrastructure (including business grants). It is also used to address the potential consequences of these levies, such as illegal dumping and stockpiling of waste.
Removes Financial Incentive to Transport Waste Across State Borders
When not all states were imposing levies and when they were charged at varying rates, it was not uncommon for waste to be transported long distances to be disposed of in states where it was cheaper. Raising levies in line with other states can help to prevent the flow of waste across borders (along with the increased fuel consumption and emissions this causes).
What is the 2025 Waste Levy Increase?
The metropolitan levy currently sits at $132.76 a tonne for both municipal and industrial waste, but this is set to increase to $169.79 a tonne from the 1st of July. There will also be an increase at rural landfills – from $66.30 to $84.78 a tonne for municipal waste and $116.76 to $149.33 a tonne for industrial. These levies are set to increase again at the beginning of the 2026/27 financial year.
This increase will bring Victoria’s levy into line with levies charged by neighbouring states, such as New South Wales.
How Will the Waste Levy Affect You?
While residents are certainly affected by the waste levy, its primary purpose is to target industrial and commercial waste generators (encouraging them to find alternative solutions).
Regardless of whether you’re a residential householder or an industrial or commercial business owner, expect to see increases to the cost of skip bin hire from the 1st of July, as skip suppliers generally pass on the cost of the levy to their customers.
Have Questions About Victoria’s Waste Levy?
If you have any questions or concerns about the increases to Victoria’s waste levy – or the levy in general – the knowledgeable team at Red Man Bin Hire is here to help.
We have been providing skip bins to Victorian residents and businesses for more than 20 years and are well-versed in the costs and rules surrounding this levy. Contact us today for more information.
